Setting up and billing for payment for independent contractors

The independent contractors are vendors. Select the box to add them to 1099's.

Enter their payments to the account use for them, ie, subcontractors.  Then code that acct. to box 7 in the 1099 feature so you can send them 1099s when the year is closed.

---

@Rustler wrote:

---

@bk1959 wrote:

I'm not sure how to set up accounts (names, info) to match the client invoices with payments made to the ICs. Any advice would be appreciated.

---

To answer your question, you would need to turn on billable expenses in company settings, and if you want set a mark up.

 

Then when you pay the IC, select the customer that bill applies to, and when you create an invoice for the customer you can click add to bring that expense with or without markup to the invoice.

 

You make payments to the IC's as an expense regardless of whether or not the customer pays the invoice, and you charge customers with an invoice, that is your income,

---

Thank you, Rustler! Very helpful info!

---

@Anonymous wrote:

Hey @bk1959, 

 

Welcome to the QuickBooks Community and happy New Year!

 

In addition to what @lynda mentioned, we also created an article that walks you step-by-step through the setup process. Check it out ( How to Prepare and Send 1099-MISCs Forms to Independent Contractors Using QuickBooks Online (Plus) ) and let us know if you have any other questions!

---

Excellent info! Thanks, James!

---

@lynda wrote:

The independent contractors are vendors. Select the box to add them to 1099's.

 

Enter their payments to the account use for them, ie, subcontractors.  Then code that acct. to box 7 in the 1099 feature so you can send them 1099s when the year is closed.

---

Thank you, Lynda!